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Hybrid IPTV Architecture Gaining Popularity

According to a new report from Infonetics Research, worldwide IPTV equipment revenue reached $423.9 million in the first quarter of 2007.

The report, "IPTV Equipment, Services, Subscribers, and Capex," shows worldwide IPTV equipment manufacturer revenue jumped 153 percent in 2006, easily passing the $1 billion mark.

While the IPTV equipment market is expected to grow at a more moderate pace in coming years, all categories but one tracked by Infonetics are forecast to at least double or triple between 2006 and 2010.

"There are a number of architecture options besides pure IPTV now available to players who want to jump into the IPTV market. The hybrid over-the-air (DTT) / IPTV architecture is gaining in popularity throughout Europe and Asia Pacific, where many subscribers still receive their broadcast programming over the air (40 percent in EMEA vs. less than 15 percent in the U.S.)," commented Jeff Heynen, directing analyst at Infonetics Research.

"Meanwhile, service providers continue to solve issues that have hindered IPTV deployments, such as access network bandwidth, QoE, and middleware scalability issues. This has to happen before IPTV can go mainstream, and it will, but it'll take time. The manufacturers and systems integrators have all been working hard to overcome obstacles, like the lack of formal standardization," Heynen continued.

Infonetics market study highlights include:

- Worldwide revenue from pure IP set-top boxes (STBs) is up 15 percent in 1Q07.

- Service providers around the world increased pure IPTV service revenue 178 percent and hybrid IPTV / over-the-air service revenue 268 percent in 2006.

- Motorola maintains its worldwide lead in the IP STB market in 1Q07.

- The number of pure IPTV subscribers hit 7.3 million worldwide, and hybrid IPTV / over-the-air subscribers hit 1.6 million in 2006.

- 56 percent of worldwide IPTV equipment revenue in 1Q07 came from Asia Pacific, 32 percent from EMEA, 11 percent from North America, and 1 percent from CALA; these percentages will shift considerably by 2010.

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